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The workplace continues to change as we look forward to 2025. This year saw mass layoffs across industries while new AI software added to employees' fears of losing their jobs.
A recent Workforce Trends Report by DHR Global identified some key areas that companies need to manage in the modern workplace. They surveyed 1,500 white-collar workers across the world to see how the latest changes to the workplace have affected their engagement and productivity.
Let’s take a closer look at these findings and provide some strategies for global organizations to overcome new challenges.
Employee Engagement: A Complex Picture
Most of the white-collar workers surveyed feel highly engaged. 88% reported feeling very enthusiastic about their work but this doesn’t tell the whole picture.
The DHR Global report defined engagement as “feeling enthusiastic about your work and/or emotionally invested in achieving team or organizational goals.” Yet, many employees revealed their engagement is driven less by passion and more by external pressures.
For example, 67% said the tighter job market motivates them to stay engaged, while 61% pointed to job insecurity as a key factor. These findings highlight an opportunity for employers to move engagement from being fear-based to creating genuine emotional investment in the workplace.
Providing career development opportunities is a great way to help employees feel more emotionally invested in their work. 80% of employees said these opportunities boost their engagement, and 93% agreed they’d feel more engaged if employers offered training that is relevant to their roles.
Burnout: The Silent Disruptor
Even with high engagement levels, many employees are struggling with burnout. One in three employees (34%) say it lowers their engagement and 82% say they feel burnt out at least some of the time.
Younger workers reported a higher burnout rate than older employees. Baby boomers nearing retirement often feel less pressure, while Gen Z workers are still proving themselves, and millennials are stepping into leadership roles for the first time.
The report showed the following causes of burnout:
- Working too many hours (58%)
- Heavy workloads (35%)
- Work/life balance (34%)
To better support employees, companies need to find ways to manage workloads, encourage work-life balance, and help employees deal with external challenges.
AI’s Impact: Balancing Innovation and Job Security
Generative AI tools like ChatGPT, Claude, and Microsoft Copilot are increasing engagement and productivity. 70% of respondents say these tools help them feel more engaged, and 72% report they improve productivity.
However, employees have mixed feelings about Gen AI. 52% are excited about its potential to improve productivity, others are unsure (10%), skeptical (17%), and neutral (21%). Over half of the respondents worry that AI could threaten their job security.
This stat shows the need for companies to offer clear guidance and support, making it easier for employees to use these tools.
Leadership Transitions: Managing Change
Over the past year, half of the respondents experienced C-suite executives leaving their company. Since 74% of employees trust senior leaders, it's no surprise that 93% felt the impact of these departures.
More than half (55%) said it made them question the company’s mission, and 52% reported issues like delays and confusion over responsibilities.
But, new leadership can bring fresh ideas and inspire employees. 63% said executive turnover increased their engagement by introducing a new vision for the organization.
Companies that manage leadership changes thoughtfully can keep morale high and use the chance to re-engage and motivate employees. When a new executive arrives, they need to share a clear vision for the company’s future and take quick action to make it happen.
Preparing for 2025 and Beyond
One strategy to stay ahead of these global workforce trends is to partner with an Employer of Record (EOR).
Global Expansion is the world’s only privately owned EOR with coverage across 214 countries and territories. We are confident that our technology, global reach, and years of experience make us unparalleled.
Talk to our international HR experts today and discover how simple managing global teams can be.
